Understanding AAM Reports for Business Publications. Understanding AAM Reports for Business Publications

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1 Understanding AAM Reports for Business Publications

2 Introduction AAM (previously Audit Bureau of Circulations) has audited business publications since its inception in As publications increasingly become multi-platform brands, AAM has developed new products and services to meet its members needs. Consolidated Media Reports (CMR) present circulation, pass-along receivership, website traffic and other auditable media in one aggregated figure represented as Total Average Gross Contacts. This gives potential advertisers a comprehensive way to look at a brand and its vitality. This booklet is designed to provide an overview of available reports for business publications: publisher s statements, audit reports, Snapshot (formerly FAS-FAX) and Consolidated Media Reports. Table of Contents Reports...2 Publisher s Statement... 3 Consolidated Media Reports (CMRs) Audit Report...12 Snapshot (formerly FAS-FAX) Reports Additional Resources Media Intelligence Center Glossary...16 auditedmedia.com

3 Reports AAM releases data on business publication members in three basic reports: 1) Publisher s statements/consolidated Media Reports (CMR) 2) Audit reports 3) Snapshot (formerly FAS-FAX) reports Publisher s Statement All publisher members are required to report their circulation on an AAM publisher s statement. Publishers file their circulation claims with AAM for sixmonth periods ending quarterly. Some members file in June and December, while others file in March and September. These figures are subject to audit. Publishers may report the following circulation types on their publisher s statements: Paid and Qualified Nonpaid Circulation Includes all types of qualified circulation and distribution, with no minimum requirements for the amount of paid or qualified nonpaid direct request circulation. Paid and Qualified Nonpaid Digital Circulation Includes paid, and qualified nonpaid print and digital circulation. Paid Circulation Includes all paid circulation. AAM considers circulation paid if subscriptions or single copies are purchased in accordance with AAM s rules. For example, subscribers must pay at least one cent for their subscriptions to count as paid circulation. Publications choosing to include pass-along audits or digital audits may wish to release a Consolidated Media Report. This report replaces a publisher s statement. The CMR is an innovative report that allows businessto-business publishers to show advertisers their total brand. Digital Editions If a publication distributes digital editions, these copies are reported separately in each paragraph of AAM reports utilizing the following format: Print only Digital only Print and digital (unduplicated) AAM Rule D 10.2 Separate Editions allows business publications to include digital editions in the qualified circulation category on AAM reports as long as the digital edition maintains the same publication name and logotype as the member publication. The digital edition may display a different name provided the logotype is shown in a consistent manner with the member s basic logotype on all editions and the term edition is consistently shown on each product. Please refer to Rule D 10.3 Digital Versions and Digital Editions for guidelines on distinguishing digital copies between digital editions and exact replicas or digital versions of the publication. Audit Report An annual AAM audit report presents a standardized document that reports the objective findings of an AAM audit. Audit reports verify the information reported in the publisher s statements filed for the same period. The audit report shows totals and averages for the 12-month period audited. Adjustments or explanations that might be necessary as a result of the audit are also included in the report. Snapshot (formerly FAS-FAX) Reports This report reflects top-line circulation information for all AAM member publications by skimming preliminary data from filed publisher s statement claims and compares it to data from the previous year. These reports are issued twice a year for the June 30 and December 31 six-month reporting periods. Snapshot is widely referenced by those who need a quick and current summary of circulation trends. 2

4 Publisher s Statement Report Banner The official name of the publication is shown at the top of the publisher s statement. Publishers also have the option to include the following items on the front page of the AAM publisher s statement: The publication s logo An image of the front page of the publication Notations concerning association affiliations Field Served is a general statement by the publisher describing the specific business or industry and the target audience of its editorial content. This statement must be approved by AAM before it is included on the report. The audience of the publication must be defined in auditable, nonpromotional terms. For a recipient of a publication to count as qualified under AAM rules, certain requirements must be met. The recipient must work or have an interest in a business or industry that the editorial content of the publication is directed. The individual must meet the publisher s definition of a qualified recipient based on job title and function. Paragraph 1A Average Qualified Paid Circulation Nonpaid recipients must have been or will be served every issue for six consecutive months to be considered qualified. This paragraph reports the average number of subscribers who have paid at least one cent for the publication. These figures are broken out by: Print and digital (where applicable) Individual Association Sponsored individually addressed Multi-copy same addressee Single-copy sales (available for those publications claiming such circulation) 3

5 Paragraph 1B Average Qualified Nonpaid Circulation For those publications reporting on the paid only format, average qualified nonpaid circulation is not reported. The qualified nonpaid circulation category is comprised of free subscriptions distributed to subscribers that meet the standards of the field served and definition of recipient qualification. If a publication has digital circulation, print and digital will be broken out as shown here. Paragraph 1C Average Nonqualified Circulation This paragraph allows publishers to report portions of their distribution that do not count as qualified circulation under AAM rules. This includes: Copies distributed free at tradeshows and conventions Duplicate copies Advertiser and agency checking copies Noncontinuous circulation In-house copies Paragraph 1D Average Qualified Paid and Nonpaid Circulation of Regional and Demographic Editions Any edition for which advertising is sold separately is reported in this paragraph. The average paid and/or qualified nonpaid circulation of those specific editions is reported. If a publication claims separate regional or demographic editions, these editions must be reported as separate totals in paragraphs 3A and 4 of the publisher s statement. 4

6 Paragraph 2: Qualified Paid & Nonpaid Circulation By Issues & Qualified Nonpaid Removals & Additions This paragaph shows the actual count of paid circulation for each issue of the sixmonth period analyzed by the publisher s statement. Relevant activity for paid circulation is detailed in the subscription and renewal percentage figures reported in paragraphs 5 through 10 of the publisher s statement. Paragraph 2: Qualified Paid & Nonpaid Circulation By Issues & Qualified Nonpaid Removals & Additions (with digital) AAM requires publications reporting qualified nonpaid to report additions and removals. Full disclosure of qualified nonpaid circulation may be added from certain sources without a specific request from the recipient. Additions and removals to the circulation file constitute turnover or churn. 5

7 For publishers of business and trade publications, readers count as more than just numbers. Paragraph 3 analyzes a specific issue in the six-month period covered by the publisher s statement. The subsections of paragraph 3 examine the subscriber file in detail, based on reader demographics, age of subscribers and detailed mailing information. In each of the paragraph 3 subsections, publications reporting on the qualified paid and nonpaid form must report paid circulation separately if the percentage of paid circulation is equal to or more than 50 percent. Paragraph 3A Business/Occupational Analysis For many publishers, this is the most important part of their publisher s statement. It details how the publication reaches its target audience. The data shows the percentage difference in total qualified circulation of the analyzed issue and the average qualified circulation of the other issues in the period. Total qualified circulation is drilled down by subscriber business and industry or job titles, occupations or functions. Publishers have the option to report supplemental information about the reader, such as purchasing influence, number of employees at each recipient s company, or products specified for purchase. Information showing total units or the penetration of a publication based on the number of copies distributed to a single business location may also be reported. However, unit data must first be audited by AAM before its initial use in a regular publisher s statement or Supplemental Data Report (page 14). 6

8 Paragraph 3B Age of Source Data Analysis Reporting of this data is required for all qualified nonpaid circulation and is optional for paid circulation. Paragraph 3B examines the analyzed issue by the source of circulation and the age of that source. Circulation is analyzed by categories such as: Direct request from recipient Direct request from recipient s company Acquired circulation This provides further detail as to the nature of circulation reported in paragraph 1B. Paragraph 3C Mailing Address Analysis Reporting this data is optional. The mailing address analysis provides detailed information maintained on a publication s circulation file. It allows the publisher to show how the copies were addressed and also that the appropriate and identifiable individuals are receiving the publication. Paragraph 4 Geographic Analysis Reporting of this paragraph is required for all publications regardless of paid or nonpaid status. Circulation of the analyzed issue is shown on a state-by-state basis (or province-by-province for Canadian publications). This information is useful to demonstrate the penetration of the publication in key areas where the field served is most concentrated. For example, coastal areas are key for publications serving the fishing or boating fields. Publications with more than 50 percent paid circulation must report paid and qualified nonpaid circulation under separate columns. 7

9 Paragraphs 5 through 8 are important for evaluating paid business publications and provide further detail to the figures shown in paragraph 1A. Gross paid subscriptions sold in total during the six-month period analyzed by the publisher s statement are examined and broken out by price data, term data, sales channels and premium usage. Paragraph 5 Price Data The number of subscriptions sold during the period are broken out into five price categories (inclusive of premium values). While all subscriptions must collect at least one cent to qualify as paid, net of all considerations, subscriptions may be sold at rates higher or lower than the basic price as long as they satisfy that requirement. Paragraph 6 Term Data This paragraph lists the subscriptions and terms sold. This is optional. Paragraph 7 Sales Channels This paragraph discloses the method used to acquire new or renewal subscriptions sold during the statement period. This is optional. Paragraph 8 Premium Usage This information indicates whether paid subscribers received an inducement to purchase a subscription. This is optional. Types of premiums offered, if any, are reported in paragraph 11. For additional information on the qualification of paid circulation with the use of premiums, see AAM s bylaws and rules. 8

10 Paragraph 9 Post Expiration Copies Included in Paid Circulation Reporting of paragraph 9 is optional. This paragraph details the percentage of paid subscriptions that have been served copies of the publication after the expiration date (also known as arrears). AAM rules allow issues served to subscribers that are awaiting pending renewal to be claimed as qualified paid circulation for up to three months after a subscription has expired. Paragraph 10 Renewal Analysis of Paid Circulation This is optional for all publishers. Information in this paragraph provides the percentage of subscriptions that were set to expire during the period analyzed by the statement and were renewed by the subscriber. As seen with the churn in nonpaid additions and removals in paragraph 2, the renewal percentage is also subject to the special conditions of the field served by the publication. 9

11 Paragraph 11 - Explanatory This paragraph is referred to throughout the publisher s statement, for example, See paragraph 11(a). When there is a situation or figure that requires further explanation, AAM requires publishers to elaborate on previous data. Paragraph 11 information can reveal: Specific sources of paid or qualified nonpaid circulation, such as business directories or lists Association subscriptions and whether the price of the subscription was deductible from the dues Arrangements under which multi-copy same addressee subscriptions were purchased Information concerning late mailings Premium offers Circulation acquired from another title Definition of Recipient Qualification This is a statement by the publisher that describes the titles or functions of individuals or groups of individuals entitled to receive copies of the publication. Sworn Statement At the end of each publisher s statement, a sworn, signed and dated statement must appear from the publisher and a senior circulation executive. This verifies the unaudited information contained within the statement was provided by the publisher and not by AAM. AAM will not release a publisher s statement without these signatures. AAM is only responsible for the audited information as released in the publication s annual audit report. Other Information The final section contains: Frequency and format Year the publication was established Year the publication became an AAM member Primary classification number from Kantar Media SRDS or Canadian Advertising Rates and Data (CARD) Address, phone, fax and URL of the publishing company Optional reporting of publisher and editor 10

12 Consolidated Media Reports (CMRs) A publication may choose to issue a Consolidated Media Report. The CMR is an optional report format that replaces the traditional publisher s statement. This report is customizable, but there are guidelines: Publishers may create custom front pages, although it must contain an executive summary, highlight total average gross contact figures, and display the AAM logo. Social media cannot be included in any gross contact figures. Print and digital circulation, as required by AAM rules, must be reported. Data from all other brand extensions websites, e-newsletters, pass-along receivership, tradeshows, social media, white papers may be included as long as it can be audited. Integrated audience metrics may be reported as long as they are auditable and identified as duplicated or unduplicated. 11

13 Audit Report An annual AAM audit report presents a standardized document that reports the objective findings of an AAM audit. Audit reports verify the information reported in publisher s statements filed for the same period. The audit report shows totals and average circulation for the 12-month audit period. Adjustments or explanations that might be necessary as a result of the audit are also included. Paragraphs contained in the audit report mirror those of the publisher s statement with the following exceptions. Audit Statement The audit statement provides information regarding adjustments that differ from the publisher s statements for the same period. Average Qualified Paid & Nonpaid Circulation by Quarters Circulation is broken out for each calendar quarter. This information is useful for trending analyses. 12

14 Snapshot (formerly FAS-FAX) Reports Snapshot reports are issued semiannually to coincide with publisher s statements. Top-line circulation data from paragraph 1 of publisher s statements is provided. A Snapshot report is divided into two sections: Editorial and market classifications listing - Editorial classifications are defined by Kantar Media SRDS for U.S. publications. Market classifications are defined by Canadian Advertising Rates and Data (CARD) for Canadian publications. These classifications are assigned based on each publication s primary listing. Alphabetical listing - Editorial classifications are defined by Kantar Media SRDS. These reports provide summarized data in an easy-to-use format. 13

15 Additional Resources In addition to the basic audit services and reports described in this booklet, AAM also offers a number of ancillary audit services and reports. Pass-Along Receivership Report AAM can issue a specialized report that confirms the number of pass-along recipients reached by a subscriber s copy. AAM verifies research conducted to determine total projected audience, a commonly used business-to-business industry metric that describes the number of qualified subscribers plus the additional people to whom a business publication is routed. This service offers business publishers an opportunity to take the next step toward including this type of data on a Consolidated Media Report. Supplemental Data Reports Subject to Audit Many publishers collect additional information on their subscribers that is not included in the publisher s statement or audit report. This information can be audited by AAM. Some of these include: Business or industry Title or function Secondary job functions of recipients Types of products specified Number of employees supervised Network Statements Publishers who have multiple titles for the same market typically sell advertising as a unit. By combining circulation averages for all titles in a group, along with issue-by-issue breakdowns for each publication, media buyers can use only one report to review circulation. 14

16 Media Intelligence Center Get an Extra Edge with AAM s Database AAM s Media Intelligence Center is unique to the industry. AAM members are provided online access to circulation data on more than 1,000 periodicals. Analysis and data-mining tools feature built-in standard reports and include 10 years of historical circulation data. In addition, special requests can be converted into customized reports. Total Circ Users have the ability to sort and search top-line circulation data online from Snapshot by publisher title, U.S. SRDS or Canadian CARD classifications. Reports Library Thousands of publisher s statements and audit reports are available here in PDF format both current and historical and is constantly updated as new reports are released. Snapshot Formerly known as FAS-FAX, these online reports provide the latest top-line circulation summary data from publisher s statements (reports are issued twice a year by constituency). Online Analysis Tools A suite of online products provides a wealth of targeted circulation and research study data. These easy-to-use resource tools provide timesaving features and functionality, including: Vital historical data Sophisticated mapping Multiple query capabilities Full range of search options Customized graphing Standard market area data Periodical Analyzer [publisher s statement data] Available as a full product or in separate modules for all consumer magazines or business publications, Canadian/International consumer magazines and all U.S./Canadian farm publications. Reference CD-ROM Statement Library A compilation of annual publisher s statements for all AAM periodical members in PDF format that is released semiannually. Available in various modules as a single order or annual subscription. For more information about the products in the Media Intelligence Center, visit auditedmedia.com. 15

17 Glossary Acquired Circulation The portion of qualified circulation obtained through purchase or merger with another publication. Additions An individual name or company appearing on the circulation file for the first time. Analyzed Issue A single issue broken down in paragraphs 3 and 4 of publisher s statements. Association Subscription Subscriptions sold as part of a membership in an association. (See deductible from dues and nondeductible from dues. ) Audit Examination of a publisher s records to verify information contained in unaudited publisher s statements. Audit Report The official document issued annually by AAM to detail findings of an audit. Basic Price The price at which the publication may be purchased by anyone, without limitation, for a definite duration. Canadian Advertising Rates and Data (CARD) Monthly summary of Canadian publication advertising rates and circulation information, subdivided by market category. ( Consecutive Issue Subscriptions to a publication receiving at least six months worth of issues in consecutive order. Credit Subscription A subscription sold on a promise-to-pay basis. Also known as a bill me. Deductible from Dues Association subscriptions where subscribers can deduct the subscription from their dues if they do not wish to receive the publication. Definition of Recipient Qualification The publisher s description of recipients qualified to receive the publication. Digital Edition and Version All copies distributed electronically that are compliant with AAM s rules. Direct Request Circulation Subscription to the publication requested directly by the recipient, either by mail, , fax or telephone. Field Served The publisher s description of the markets or occupations to which the publication s editorial content is directed. Individual Subscriptions An individual subscription served by mail and qualified as paid in accordance with AAM rules. Multi-Copy Same Address All copies or subscriptions to a publication purchased in amounts of two or more. Noncontinuous Circulation Copies of a publication sent out on an occasional, not consecutive basis. Also known as rotated circulation. Nondeductible from Dues Subscriptions from association members where no deduction of the publication s subscription price from dues is allowed. Nonpaid Circulation Circulation that does not conform to AAM s definition of paid. Paid Circulation Any subscription to a publication for which a subscriber pays at least one cent. For single-copy sales, payment must be equal to at least one cent. Publisher s Statement An unaudited statement of a publication s circulation figures, submitted by the publisher and issued by AAM. Qualified Those recipients, either paid or nonpaid, who conform to the publisher s definition of recipient qualification and field served and meet consecutive issuance requirements. (See consecutive issue) Removal When an individual name or company is permanently removed from the circulation file. Renewal Any paid subscription renewed within six months after its expiration and paid for within six months of receipt of renewal notification by the publisher. Sponsored Individually Addressed Sales to a third party (other than a business for its employees, subsidiaries or branch offices) where the copies are individually addressed and mailed to the designated recipients. Kantar Media SRDS Monthly summaries of publication advertising rates and circulation information, subdivided by market category for the U.S. ( Supplemental Secondary demographic information about the recipient, beyond that individual s primary business, industry, title or function. Unit A business engaged in a specific type of activity at a single location. 16

18 The Alliance for Audited Media (AAM) is a not-for-profit organization that connects North America s leading media companies, advertisers and ad agencies. Founded in 1914 as the Audit Bureau of Circulations, the AAM is the preeminent source of cross-media verification and information services, providing standards, audit services and data critical to the advertising industry. The organization independently verifies print and digital circulation, mobile apps, website analytics, social media, technology platforms and audience information for newspapers, magazines and digital media companies in the U.S. and Canada. In November 2012, the AAM joined forces with Certified Audit of Circulations. Headquarters Office 48 W. Seegers Road Arlington Heights, IL T: F: New York Office 122 East 42nd Street, Suite 807 New York, NY T: F: Canadian Office 151 Bloor Street West, Suite 850 Toronto, ON M5S 1S4 T: F: /13 Copyright 2013 Alliance for Audited Media. All rights reserved.

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